Oil prices inch higher ahead of US inventories data

Oil prices inch higher ahead of US inventories data

SINGAPORE: Oil prices edged up on Wednesday ahead of data on U.S. oil inventories, with crude futures supported by tight supplies and recovering fuel demand as China's top cities relax COVID-19 curbs.

Brent crude futures for August rose 22 cents, or 0.2%, to $120.79 a barrel by 0012 GMT after closing at the highest since May 31 on Tuesday.

U.S. West Texas Intermediate crude for July was at $119.65 a barrel, up 24 cents, or 0.2%, after reaching its highest settlement since March 8 on Tuesday.

Analysts polled by Reuters expect another drawdown of U.S. crude inventories in data for last week although gasoline and distillates stocks could edge higher.

However, figures from the American Petroleum Institute showed that U.S. crude and oil products inventories rose last week.

The U.S. Energy Information Administration (EIA) reports at 10:30 a.m. EDT (1430 GMT) on Wednesday.

Global crude and oil products supplies remain tight, boosting Asian refiners' diesel margins to record levels, as Western sanctions hamper exports from major producer Russia.

The CEO of global commodities trader Trafigura said oil prices could soon hit $150 a barrel and go higher this year, with demand destruction likely by the end of the year.

Most refineries globally are already running at close to